Backbone At A Premium

Isn't it wonderful what a little pressure applied to the right legislators can do.

Never mind the lack of persuasive evidence that capping non-economic damages in lawsuits will bring down insurance premiums.

And forget that the insurance industry is soaring on Wall Street, despite having thrown many small businesses into a tailspin with inexplicable jumps in liability rates.

Members of the Florida House Appropriations Committee emerged this week from the back rooms and the lobbyists' dinner tables with a bill that simultaneously guts regulation of the insurance companies and restricts citizens' rights to collect in lawsuits. Of 33 committee members, only one -- Elvin Martinez of Tampa -- stood up to the insurance and business lobbyists.

What will consumers receive in return for this bill? A pittance -- no, not even that. Rolling back insurance rates 40 percent until Jan. 1, 1987, insults day-care centers and others that have seen their premiums increase as much as 400 percent or more despite records devoid of expensive claims.

The committee's action would be more serious were it not for two things: the Senate's refusal to succumb to such specious remedies, and the apparent determination of Appropriations Chairman Sam Bell of Ormond Beach and Speaker- designate Jon Mills of Gainesville to rework the bill when both houses negotiate.

Mr. Mills and Mr. Bell remain skeptical -- as they should -- of tampering with the legal system out of some illusion that insurance companies will serve up relief from oppressive rate increases.

Meanwhile, the Senate's skepticism clearly shows. Besides hanging tough on better regulation of the insurance industry, the Senate version demands a rollback to 1984 premium rates in return for limiting damages to $500,000 and other changes in civil law. Though such changes still would be unnecessary, at least the Senate would not be guilty of surrendering people's rights without demanding drastically lower rates in return.

Beyond the rollback, the Senate's proposal would force insurers to reveal their investment earnings, which would help the insurance commissioner decide whether rates were justified. A similar provision in workers' compensation insurance resulted in refunds of $150 million over the past three years.

Better regulation of the insurance industry, along with such sensible steps as imposing stiffer discipline on doctors who repeatedly commit malpractice, could bring the liability crisis under control. That kind of clear response defies the House's wishful thinking that somehow lobbyists will deliver up lower insurance rates along with all the smoke they're blowing.